As the February implementation deadline for the Credit Card Act of 2009 draws near, many card issuers are scrambling to come up with ways to replace revenue they will lose under the Act. Here are some things to be watching for:

Annual Fees. Although MidWest Financial does not charge an annual fee of any type for its card, other banks are finding sneaky ways to charge annual fees. For example, we have seen one report that Citibank has begun charging some customers a $35 fee unless they meet an annual minimum spending amount of $2,400.

Fee Hikes. The Act eliminated some fees that Congress considered abusive, such as over-limit fees. But it doesn’t affect all fees–for example, Balance Transfer fees are not addressed. Industry wide, these fees have been hovering around 3% for quite some time now; however, last year Bank of America increased its Balance Transfer fee to 4% and JP Morgan Chase recently raised its fee to 5%. MidWest Financial does not currently charge a Balance Transfer fee.

New Fees. Some card issuers are spending time dreaming up completely new fees (think of the airline industry with its now ubiquitous baggage fees). For example, Fifth Third Bancorp recently began charging a $19 inactivity fee for customers who don’t use their card at least once a year. MidWest Financial has no plans to add fees at this time.

What can you do? Make sure you watch your mailbox for anything from your card issuers, as it could be a notice regarding fees or a change in terms. Read all of the information you are sent to make sure you fully understand the changes. Depending on what those changes are, you may even want to consider shopping around for a new card.

Have you heard about the new credit card rules rolling out this year? The second phase of the Credit Card Act of 2009 goes into effect on February 22, 2010. Among other changes, the new law intends to ban unfair rate increases and fee traps. Before you get too excited though, you should be aware that many card issuers are looking for ways to compensate for potential losses of revenue.

While there are no additional fees or rate increases anticipated for MidWest Financial’s credit cards at this point, some financial institutions are already introducing or raising annuals fees on their cards. More changes may concern credit cards with reward programs. For example, with some cards a late payment may result in your reward points being withheld and you being charged a fee to reinstate them. And, with some programs, reward points may be worth less this coming year. MidWest Financial reward points will not be changing.

What should you do? Make sure you are aware of how the new rules are going to affect each credit card in your wallet (notices will be appearing in your mailbox) and make changes to avoid new fees. For example, consider switching to electronic statement if one of your credit cards starts charging for a paper statement. If, ultimately, you decide to change credit cards, do your research, talk to your MidWest Financial Rep about your credit card options, and compare credit cards on sites such as bankrate.com.

What happens when someone steals your credit card number and tries to use it? As a Credit Union employee (Hi, I’m Lora!) I’ve explained how our credit card fraud protection system works, but never really experienced it. That is, until Saturday morning when our Credit Card Fraud Department called me wanting to know if I had authorized anyone else to use my card and if it was in my possession. Apparently someone had tried to use my card number Friday afternoon at a Wal-Mart in California, just an hour after I had purchased my lunch with it in Ann Arbor.

I immediately cancelled the card and, though I’m inconveniently without one for the next 7-10 days, I feel better knowing that the system actually works. Even with my often erratic card use the Fraud Department caught this one immediately. It’s definitely something I’ll keep in mind when I’m feeling annoyed at having to call MidWest Financial (or walk across the hall as the case may be) and let them know what my travel plans are to ensure that my card will work.

I have another card with another bank, same erratic spending patterns. I’ve never heard from their fraud department. And that’s not to say there hasn’t been the possibility of fraud. So I’ll continue to pull the MidWest Financial card out of my wallet—‘cause I know someone’s got my back.